A Bitcoin Price Drop! Why?

Bitcoin price

Amongst all the asset classes, bitcoin is the only asset that has the most volatile trading history. Everyone bitcoin sets new all-time high records and top the news headlines. This is quite shocking to see how news about bitcoin can adversely affect its price leading to a Bitcoin price drop.

Any current event or news are the major factors that affect bitcoin’s price. In the entire history of bitcoin, there have been many times when news headlines about accepting bitcoin by multinational companies and hacks of exchanges hit its investors hard. Bitcoin news has the power to either make its reputation or break it in seconds.

To know more about bitcoin market, you must read why bitcoin prices go up and down.

In the early days of Bitcoin, its price dropped when there was news about the hack of the most popular crypto exchange known as Mt. Gox. It has undergone multiple crashes and rallies since its emergence, and it is continuing to shock or amaze people by hitting the news headlines every time. The change in its price reflects both dissatisfaction and enthusiasm about the promise made by its creator, Satoshi Nakamoto.

Bitcoin was designed to be a medium of exchange that eliminates the intermediaries, but it is replacing the fiat currencies and replacing other investment assets. People are highly investing in bitcoin by considering it as “Digital Gold” as it provides high returns than any other investment asset. 

Besides this, there’s a lot more going on in the market, and it is essential to stay updated about current events and news to know about bitcoin before investing in it. Here in this article, let’s know the current headlines of bitcoin and know is it rocking or falling

  • Tesla and Microstrategy are shifting parts of their corporate field treasuries to bitcoin. Bitcoin and its underlying technology have caught the attention of investors by showing its financial potential. With each passing day, bitcoin is getting matured, and currently, the attention of investors has shifted to business needs and requirements around bitcoin. The growing e-commerce ecosystem and the expanded utilization of cryptocurrencies like bitcoin have caught the attention of investors. 
  • On March 13, bitcoin’s price made an all-time high record as for the first time; bitcoin was traded at $59,755. For the first time, bitcoin was traded this high, making it the most popular and world’s largest cryptocurrency.
  • Like gold, the supply of bitcoin is scarce, and its demand is a significant factor that drives its price like all other commodities. But bitcoin is full of twists. Bitcoin’s supply is limited to 21 million bitcoins, and its supply growth gets halved every four years. It is designed specially to become constrained, which means the demand swings make its price fluctuate.
  • Tesla paused accepting bitcoin for the purchase of vehicles. After going bullish for around two months on bitcoin, Tesla paused accepted this popular cryptocurrency as a medium of the exchange last Thursday to buy electric vehicles. 

The government is planning to set up a new panel for studying the crypto regulations

The stand of the government on cryptocurrency in India has been quite unstable. Earlier, crypto was completed banned in the country, but now the government is trying to learn about the possible uses of blockchain technology, and they may set up a committee to study blockchain technology and how it can be used for enhancing the technology.

The planning is in its initial stage, so nothing is confirmed yet. With the growing popularity of cryptocurrency in India, it has become important to regulate them as it is impossible to stop people from trading in cryptocurrencies such as bitcoins.

The finance minister Nirmala Sitharaman has stated earlier also that government needs to focus on regulating the working of cryptocurrency in the market as placing a complete ban is not the solution. The cryptocurrency regulation bill was expected to be tabled in the 2021 parliament budget session held in the month of March, but it was postponed due to some unknown reasons.

But now it is believed that in the next session, the bill will be proposed in Parliament. According to some reports, currently, the bill is expected to criminalize the use of cryptocurrency and trading in India. If the bill gets passed, holding cryptocurrency will also become a legal offence, and the person may have to face legal charges.

Bitcoin price drop article and permission to publish here provided by Jean Nichols. Originally written for Supply Chain Game Changer and published on June 23, 2021.